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Apple Computer iTunes Revenue Grow Rate

comScore Networks reported that revenue from Apple Computer's iTunes digital media download service rose by 84 percent during the first three quarters of 2006 versus the same period one year ago as a result of a 67 percent increase in the number of iTunes buying transactions and a 10 percent increase in the dollars spent per transaction.

"As Mark Twain might have said, the rumors of iTunes death have been greatly exaggerated," said Gian Fulgoni, chairman of comScore Networks. "In contrast to a recent research report indicating that iTunes sales have declined by 65 percent, comScore data show that iTunes sales actually grew."

Further, the comScore analysis found the number of people using the iTunes service has also increased. The iTunes application attracted 20.8 million unique visitors in November 2006, up 85 percent from November 2005.

comScore's findings align closely with a report from analyst Gene Munster of the investment banking firm Piper Jaffray, who wrote in a research report that the number of songs sold per week on iTunes had risen 78 percent in the first nine months of 2006 compared with the same period in 2005.

"Contrary to recent reports suggesting sales on iTunes are declining rapidly, our analysis of Apple company data shows strong growth year over year," said Munster. "With less than 5 percent of music purchased online, this market will go through massive growth in the next several years," he added.

comScore's analysis is based on the online behavior of 1 million U.S. consumers who have given comScore permission to confidentially capture their browsing and transaction behavior. The iTunes sales data is part of a total of 8.5 million buying transactions observed by comScore during the stated timeframe.

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